The government should end subsidised domestic cooking gas (LPG) for people with income of more than Rs 6 lakh per annum, a Parliamentary Panel has suggested.

A 14.2-kg LPG cylinder in Delhi currently costs Rs 395.35. This is Rs 247 short of its market price. If the panel recommendation is accepted, people with more than Rs 6 lakh per annum household income will have to pay Rs 642.35 per bottle.

“…to offset the huge losses made on account of subsidised domestic LPG cylinders, the Government may consider to do away with providing subsidised LPG to rich and affluent people having an income of more than Rs 6 lakh per annum”, it said.

This should include those holding constitutional posts, public representatives like MPs, MLAs/MLCs,” the Standing Committee on Petroleum and Natural Gas said in its latest report.

The suggestion was made in view of the huge subsidy bill the government has to foot while selling fuel at below market price.

“The Committee are of the firm opinion that such an initiative by the government will help to expand its subsidised LPG distribution to the rural people who are more in the need of this clean fuel,” the report, tabled in Parliament today, said.

It noted that the government is considering a proposal to limit supply of subsidised domestic LPG cylinders to four per household in a year.

The Committee said a more effective way to cut subsidy outgo will be to completely stop selling subsidised LPG cylinder to the rich.

Also, the panel suggested that the oil ministry pursue early clearance of the scheme for providing free LPG connections to all eligible BPL families.

“The scheme (should) be extended for the next Five Year Plan till all eligible BPL families are covered under the scheme”, it said.

An Empowered Group of Ministers (EGoM) headed by Finance Minister Pranab Mukherjee was to meet on July 12 to consider restricting supply of subsidised LPG cylinder to four per household in a year. But the meeting was deferred.

As per the proposal, restricted subsidised LPG supply should be only for those who either owned a car, a two-wheeler, a house or figure in the income-tax list.

 

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0 responses to “Govt to end gas Subsidy for people with annual income of Rs 6 lakh”

  1. Corruption Free says:

    Let the price of cooking gas in India be reduced to the price according to the international price of oil and natural gas, which is below the present subsidy levels, let the government do this immediately else let it be removed. Let the bank account and aadhar card be discarded completely, as there is no subsidy component from the government based on international prices of oil and natural gas. Let this government which does not provide any subsidy according to international prices of oil and natural gas stop harassing the people. Let any government that continues anti-people like this activity be removed. Let the LPG subsidy not haunt consumers anymore, as there is no more subsidy according to the international price of oil and natural gas.

  2. JAY says:

    Before removing the subsidy, I pray that they remove ALL SUBSIDIES TO POLITICIANS & MAKE THEM PAY FROM THEIR POCKET.
    TO BEGIN WITH, PL REMOVE THE FUEL , ELECTRICITY SUBSIDY TO POLITICIANS & SEE THE HUGE , HUGE, HUGE, HUGE ………… SAVINGS in GOVT EXCHEQUER . MAKE THEM JUST PAY FOR THEIR ELECTRICITY BILL & PETROL. THIS WILL BRING MUCH, MUCH MORE SAVINGS THAN THE SAVINGS OBATINED BY CRUSHING THE COMMON CITIZEN.
    Toady an MLA, MP, Minister, politician no more travel by road. They fly in “Chartered helicopters” even for PERSONAL USE. They never feel the pinch because they don’t pay. Is there any review / audit for this HUGE , EXTRAVANGANT , WASTE FUL expenditures ??
    All politicians when forced to move on road, move only in HUGE SUVs with hardly 1 or 2 travellers in each SUV. They always move ONLY WITH an ARMY / BATTALION of SUVs surrounding them. Where is all this fuel WASTE calculated. The entire TRAFFIC is made standstill, till the whole battalion passes by. IS there an audit for the fuel waste & inconvenience & inhuman attitude of the politicians.
    It is not clear by what standards the Government considers people having an income of more than Rs 6 lakh per annum”, as “rich and affluent” – The statement reflects that Govt is in an imaginary world and does not know the ground reality of prices. For a politician EVERYTHING is FREE / paid out of tax payer’s money. Had he paid FROM HIS POCKET for food, house, electricity etc. etc. he will know the pinch. Going by the series & enormity of scams it is fact that today, he not ONLY eats, lives and sleeps out of public money but has INVESTED for his generations to eat , live and sleep out of public money as well.

    We think we have elected them to take care of the country & its people. The politicians see it as an opportunity to LOOT the nation till the last pie and last drop of blood from the common man.
    DO NOT USE THE COMMON MAN TO CRUSH HIS BLOOD OUT TILL THE LAST DROP. GIVE HIM SOME PLACE TO EXIST IN INDIA. CLEAN AIR TO BREATHE , GOOD FOOD TO SURVIVE & A ROOF ATOP. DOES THE COMMON MAN NOT EVEN HAVE THE PRIVILAGE TO THIS BASIC ESSENTIAL THINGS FOR SURVIVAL ???

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